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Bobtail Insurance for Semi-Truck Drivers

Bobtail Insurance for Semi-Truck Drivers

When you purchase a semi-truck, one of the first things you must do is get it properly insured. This involves getting primary liability insurance, as well as considering bobtail insurance.

Many drivers overlook Bobtail insurance, also known as non-trucking liability insurance. While it’s not always necessary to own a truck, this insurance can add significant value if you’re involved in a semi-truck accident while not driving on a delivery route.

This guide explores exactly what non-trucking liability insurance is, what it covers, and whether you should get bobtail insurance for your semi-truck.

What is Bobtail Insurance Coverage?

Bobtail insurance protects commercial truck drivers when operating their trucks without a trailer or cargo. It’s sometimes also referred to as non-trucking liability insurance.

Bobtail insurance is important because most commercial trucking insurance policies only provide coverage when the truck is driving or hauling freight. However, all kinds of possible issues could happen to your semi-truck while it’s not in action – which is when bobtail liability insurance will cover you.

Bobtail insurance is a different product from primary commercial trucking insurance. Primary insurance covers the truck while it’s engaged in commercial activities, such as hauling cargo. Bobtail insurance specifically covers the truck during non-business use or when it’s operating without a trailer.

Having both primary commercial truck insurance and non-trucking liability insurance provides complete coverage for your vehicle.

What Does Bobtail Insurance for Semi-Trucks Cover?

Insurance policies change with each broker, so each bobtail insurance plan is unique. However, bobtail liability insurance typically provides two main areas of coverage.

Non-Commercial Use

Bobtail insurance covers situations when a commercial truck is being driven for non-business or personal use. For example, if a trucker is driving the tractor (the front part of the truck) without a trailer for personal reasons, like going home after delivery, this coverage can protect them.

Bobtail insurance can also provide coverage for a parked semi-truck when it’s not in commercial use. Many commercial truck insurance companies only offer coverage when the truck is in active service.

Liability Coverage

The main focus of bobtail insurance is on liability protection. This type of truck insurance can help cover the costs if the truck driver is involved in an accident while not hauling a trailer and they are found to be at fault. This includes bodily injury and property damage liability. Truckers must have proper liability coverage at all times.

Who Needs Bobtail Insurance?

Anyone who owns a semi-truck can benefit from having non-trucking liability insurance.

This is especially true if you’re an owner-operator, as you’ll probably drive your truck’s trailer non-commercially at times. As your semi-truck is such a valuable asset, you’ll want to make sure it’s adequately insured at all times – which is why bobtail insurance is so valuable.

Trucking companies or truck lease agreements might sometimes require bobtail insurance. So, some truck drivers may need to take out a bobtail insurance policy to buy a semi-truck. You could get bobtail insurance coverage for a single commercial vehicle or this non-trucking liability coverage for an entire fleet.

If you often drive your truck without a trailer, then getting bobtail insurance is worth considering. Bobtailing is also known to be more dangerous than driving a loaded truck, so having this coverage can add a great deal of value. Without it, you may have to pay enormous legal fees and damages costs in the event of an accident.

Even if it’s not legally mandated, it’s a good idea for truckers who operate their vehicles without trailers to have this coverage to avoid potential financial risks.

How Much Does Bobtail Insurance Cost?

As with any commercial vehicle insurance policy, the cost of non-trucking liability insurance depends on various factors. These are mainly focused on:

  • Your personal driving history: It’s more likely for truck drivers with a longer driving record and more experience with a CDP to get lower premiums on their non-trucking liability insurance.
  • Usage: How long you plan to need bobtail liability insurance based on how often you drive without a trailer will be considered. The more you bobtail, the more expensive your insurance premiums could be.
  • Insurance history: Any bobtail insurance company considers past insurance claims and policies to understand your risk profile.
  • Your coverage limits: Of course, the amount you want to be covered up to in liability costs dictates how much you’ll pay for your bobtail truck insurance. The higher your coverage is, the higher your costs will be.

So, the cost of bobtail insurance can vary greatly depending on the driver’s circumstances. Different bobtail insurance companies will also charge differently.

However, East Insurance Group says drivers often pay around $400 to carry bobtail insurance. Temporary bobtail insurance policies are also available at lower annual premiums.

Where to Find Bobtail Truck Insurance

Many commercial vehicle insurance providers offer bobtail coverage. Most insurers provide quotes on their websites. It’s also worth looking into insurance comparison sites to see what bobtail and trucking liability insurance options are available. This also makes it easy to compare quotes.

Take a look at our roundup of the top commercial truck insurance brokers to help you find the best bobtail insurance coverage.

Conclusion

While saving money on insurance costs may seem attractive, being caught short without insurance can be an absolute killer for your trucking business. This is why it’s essential to consider non-trucking liability insurance if it makes sense for your situation.

You might even need non-trucking liability insurance to purchase a semi-truck in the first place.

If you’re looking to buy a new truck, contact us at Mission Financial Services. We make it easy for all commercial truck drivers to gain financing for their ideal semi-truck.

How To Handle A Fatal Semi-Truck Accident

How To Handle A Fatal Semi-Truck Accident


Handling a fatal semi-truck accident is more complex than handling an accident involving regular cars.

Semi-trucks are subject to strict regulations that may not apply to regular cars. You must comply with all the FMCSA semi-truck accident regulations to be safe.

Additionally, more than one party can be liable for the crash. You need to handle the truck accident in a way that protects your rights to compensation for all injuries and damages incurred.

There are nine steps you should take to abide by the law and optimize your chances of maximum compensation. This will help you deal with the aftermath and get back on track sooner.

Handling a Fatal Semi-Truck Accident: 9 Steps

Some truck accidents lead to severe injuries or fatalities. It can be terrifying, but you must stay at the accident scene and avoid panicking.

If you leave the accident scene before following due process, you risk losing your truck driving license or having criminal charges filed against you. Doing this also reduces your chances of getting compensated for any damages. Here’s how to handle a fatal semi-truck accident correctly.

At The Accident Scene

Step 1: Confirm That Everyone is Safe

In a fatal truck accident, your safety and that of your passengers should be your top priority. If you’re injured, stay still until help arrives. If you’re uninjured and can move, check on other occupants of your truck and occupants of other vehicles involved.

Avoid moving any injured victims, as it may make their condition worse.

Step 2: Call Emergency Services

Call 911 to get first responders dispatched to the accident scene as soon as possible. In most states, calling the police to the scene and filing a report is mandatory if the crash led to severe injuries, multiple fatalities, or extensive damage to vehicles.

When dealing with the authorities and any other party approaching you, words matter. Be careful not to admit fault to anyone in any way when giving an account of what happened. Anything you say throughout the investigation can work as evidence against your claim.

Step 3: Collect Evidence

Start building your case by documenting the accident scene. Take pictures of the damage incurred to use as evidence when proving your claim to insurers or the court should your case get to trial. Specifically, take photos of the following:

  • Your semi-truck and the damage sustained
  • The other vehicles involved in the crash
  • Skid marks, shattered glass, and other physical evidence on the ground, such as car parts
  • Landmarks and street signs to show the location of the truck crash

Often, fatal truck accidents cause a traffic build-up and are newsworthy. You might get tempted to share photos of the scene on your social media pages, but don’t do it. Your online post could weaken your claim and reduce the settlement amount.

Step 4: Get Information on Those Involved

It’s also critical for you to get the details of everyone involved in the crash. In an accident including another semi, pickup, and a cab, the following info may come in handy:

  • Drivers’ names and addresses
  • License number of the other semi-truck driver plus the trucking company they work for
  • The plate number of the semi and further identifying details like the make or model
  • Insurance company info, including policy number
  • Eye witnesses’ names, phone numbers, or addresses
  • Generally, the more information you get, the easier it is for you to file a personal injury claim correctly if you were not the at-fault party.

After The Accident

Step 5: Seek Medical Evaluation and Document Treatment

Seek medical evaluation even if you feel fine. Keep all medical records, including your expenses, safely. You may need these to submit with your claim.

As a company truck driver, you must take post-accident alcohol and drug tests following applicable federal alcohol testing requirements. Your employer is required by law to ensure this happens.

Step 6: Get The Vehicle Appraised

If you’re an independent truck driver or owner-operator, get your semi-truck appraised to evaluate the damage and estimate the repair cost. Ensure you follow the vehicle appraisal guidelines your insurer requires so they don’t refuse to settle your claim.

For those with towing add-on coverage, you can have your vehicle towed. However, request the mechanic not to repair any damage until you clear the vehicle with your insurer.

Step 7: Contact a Commercial Semi-Truck Accident Lawyer

Consult a qualified semi-truck accident attorney before reaching out to your insurance company. The lawyer will help you identify the legal routes you can take and how much in settlement you deserve. Your legal team can also help you handle multiple insurers and deal with any lawsuits you may face.

Step 8: Alert Your Insurance Company

Once you know your legal stand, alert your insurance company and file a claim. Ensure you do this within the time frame specified by your insurer to avoid denial of coverage.

You may also want to file settlement claims with the insurers of all the parties responsible for the accident if you were not at fault. These may include your trucking company, vehicle manufacturers, repair companies, government entities, etc. It’s best to let your lawyer handle this so you can get maximum compensation from each party.

Step 9: Complete Repairs or Get a New Semi

The last step is to get your truck repaired to get back on track. You can also opt to purchase a new semi if the one you have is irreparable. Mission Financial Services can help finance your commercial vehicle loan repairs or new semi-truck purchase. Here’s a step-by-step guide on financing a semi-truck you can follow to get the help you need.

Conclusion

It’s worth emphasizing that you should avoid talking to the representatives of insurance providers (including your own) before consulting your lawyer.

Insurers almost always put their interests first, and they’ll offer less than you deserve. This will happen from when the accident occurs until a fair settlement is reached, so you must stay vigilant throughout.

For more information on financing your truck’s repairs or buying a new one after a truck accident, contact us at Mission Financial Services. We are always ready to help you get your life back on course and can customize our financing options to your specific situation.

accident 3rd party

What to Do in an Accident With Semi Truck

As a truck driver, you’ll need to know precisely how to deal with a semi-truck accident if one happens.

While it’s essential to know how to avoid accidents in the first place, accidents still happen all the time. Nearly 388,000 truck accidents happen annually across the U.S.

If you can’t prevent the accident from taking place, the best thing you can do is to deal with the accident as efficiently as possible. Each accident is different and will come with its challenges. However, the same general process can be followed after an accident occurs.

Here are the steps you should follow if you’ve experienced a semi-truck accident.

What to Do in an Accident With Semi Truck: Steps to Follow

Check for Injuries

First and foremost, check yourself and others involved for any injuries. While there’s much to consider during a truck accident, safety should always be your priority.

If anyone is injured, call 911 immediately to request immediate medical attention. Even minor injuries should be reported, as a complete medical evaluation may reveal the injuries to be more severe than suspected.

Identifying possible injuries will also help you understand how best to deal with the truck accident in terms of moving vehicles and clearing up any wreckage.

Once emergency services have been notified about any injuries, you can move on to dealing with the semi-truck accident.

call law enforcement
Move to Safety

If possible, move your vehicle to the side of the road or a safe location to avoid further accidents. Turn on hazard lights to alert other drivers.

This isn’t possible for some truck accidents, and it’s not a good idea to try to move any vehicles if they’re in hazardous situations. However, if your vehicle is alright and you can clear the road without causing any harm, then try to do this.

Before moving the vehicle, though, you’ll want to take pictures of the car accident. This is important for the truck accident investigation – more on this later.

Call Law Enforcement

Once the scene is as safe as possible, the next step is to alert the authorities about the truck accident.

Contact the police to report the accident, even if it’s minor. Having an official report can be valuable for insurance claims and legal purposes. If you’re a truck driver who crosses state boundaries, it’s wise to know which local law enforcement numbers to call for each state you travel through.

Exchange Information

You’ll need information to contact the other driver’s insurance company. Make sure you exchange this information before departing the scene of the accident.

Exchange contact, insurance, and driver’s license information with the other driver. Include their company name, contact number, and any relevant details. Semi-truck accidents can sometimes be tricky to report and follow through with insurance, but having the other driver’s contact details will help the process.

Gather Evidence

An essential part of dealing with a semi-truck accident is gathering enough evidence to report the accident to your insurance company.

If it’s safe to do so, take photos of the accident scene, the positions of the vehicles, any damage sustained, and road or weather conditions. Taking videos with your mobile phone will also be useful.
The more detailed your documentation is, the better, as this will all help make the insurance claims process go faster. So, take your time carefully documenting the scene of the accident.

Obtain Witnesses

If there were any witnesses to the accident, ask them for their contact information. Their statements can provide valuable support for your case.

While this isn’t always possible or necessary, having an extra witness statement is always helpful to help with any legal claims or police reports.

Limit Communication

While exchanging information with the involved parties is essential, avoid discussing fault or assigning blame at the scene. Stick to the facts when talking to the police, other drivers, and witnesses.

Always try to keep a cool head and focus purely on the accident and how best to deal with it. While your emotional condition can be difficult after a semi-truck accident, staying calm and collected will make the process easier to manage.

Contact Your Insurance Company

As soon as you’ve dealt with the accident, notify your insurance company about what happened. They will guide you on the necessary steps for filing a claim and getting compensation.

Having reliable insurance is one of the most essential parts of starting a trucking company. Once you’ve found the right commercial truck insurance provider, ensure you know how to reach them in an emergency.


Seek Medical Attention

Even if you don’t feel seriously injured, seeking medical attention after an accident is always advisable. Some injuries might not be immediately apparent and could become more significant as time passes.

Avoid Settlement Agreements

While this differs from case to case, it’s generally best to avoid settlement agreements immediately.

Do not sign any settlement agreements or release forms from the trucking company or their insurance representatives without consulting your legal counsel. Make sure you deal with a lawyer when going through settlement negotiations. This will help you get the best deal and compensation for your situation.

You must consult an attorney if the accident resulted in significant injuries, damages, or disputes. Try to consult with a personal injury attorney specializing in commercial vehicle accidents. They often offer a free consultation – so make use of these.

Conclusion

Semi-truck accidents may be the last thing you’ll ever want to deal with. However, they sometimes cannot be avoided.

Knowing how to deal with these accidents will help you get through the accident faster and safer. Following the proper steps will also make it easier to get an appropriate settlement after the accident.

If you need to purchase a new semi-truck, you may need to find the right financing solution to make it happen. Get in touch with us at Mission Financial Services, where we help all kinds of commercial truck drivers access the financing they need to purchase a semi-truck.

Commercial Vehicle Accident Lawyers You Should Know About

Commercial Vehicle Accident Lawyers You Should Know About

Commercial Vehicle Accident Lawyers You Should Know About

Navigating a car accident involving commercial vehicles is often challenging. Still, the right commercial vehicle accident lawyers can make things less complicated.

With the right commercial car accident lawyers, going through the claims process to get adequate compensation from an insurance company becomes simple. The lawyers guide you while handling almost everything on your behalf.

There are two types of commercial vehicle accident lawyers you should know about. We discuss this in detail below and share a few insights on what to consider when looking for a commercial vehicle accident lawyer.

Commercial Vehicle Accident Lawyers: Why Do You Need One?

If you find yourself in an accident involving commercial vehicles, the two types of commercial accident lawyers you can turn to for help in seeking compensation include:

  • Regular car accident lawyers
  • Commercial truck accident lawyers

Both types of accident lawyers fall under the category of personal injury lawyers. Still, they differ in terms of the cases they work on.

Regular car accident lawyers work on all vehicular accident cases, including those involving commercial motor vehicles like buses and taxicabs. In contrast, commercial truck accident lawyers specialize in truck accident cases.

For accidents involving commercial trucks, such as semi-trucks, tanker trucks, and delivery trucks, it’s best to get an experienced truck accident lawyer instead of a regular car accident lawyer.

truck accident

Why You Need Commercial Truck Accident Lawyers for Truck Accident Cases

You should get experienced trucking accident lawyers for all truck accident lawsuits and not any other type of personal injury lawyer for the following reasons:

Truck Accidents Are Fatal

The size and weight of large trucks make truck crashes more fatal than accidents involving other vehicles. Truck accident victims may suffer life-changing injuries requiring immediate medical attention and additional long-term treatments.

An experienced truck accident attorney is better positioned to calculate the amount of settlement you deserve based on the damages incurred. These may be:

  • Economic damages: These include current and future medical expenses, lost wages, loss of earning capacity, property damage, and legal fees.
  • Non-economic damages: These include mental anguish, fear, anxiety, and any other emotional pain and suffering experienced because of the accident.

Truck accident attorneys can also help you access medical treatment on a lien basis if you cannot pay for medical expenses upfront.

Truck Accidents Are Complicated

Semi-truck accidents happen due to a combination of factors. This means more than one party might be legally responsible for an accident involving large commercial vehicles.

For example, a truck crash may occur due to driver error. Say the truck driver failed to stop on time and collided with other commercial vehicles. The error might have happened because the truck driver was asleep or the vehicle malfunctioned.

In this case, four different entities might be liable for the truck crash:

  • The truck driver: Was the driver driving under the influence?
  • Truck company: Did they require the truck driver to be on the road for too many consecutive driving hours, leading to driver fatigue?
  • Truck manufacturer: Did the malfunction occur due to a manufacturing defect?
  • Truck maintenance company: Did the malfunction happen as a result of poor maintenance?

It’s easier for experienced commercial vehicle attorneys to identify all the parties responsible for the truck collision above and pursue compensation from each one.

Regular personal injury lawyers might find this challenging. So, your chances of getting maximum compensation from multiple liable entities are higher when you get a trucking accident lawyer.

Tractor Trailer Accident Cases Are Tedious and Time-Consuming

The stakes are higher in trucking accident cases than in other personal injury cases. Because of this, insurance companies usually employ underhand tactics to make truck accident victims settle for less than they deserve.

Some of these tactics include intimidation and delayed responses to an accident claim. Truck companies might also put up a fight. They’ll try to interfere with the case by wiping out evidence incriminating them or their commercial drivers.

You need aggressive legal representation to handle several insurers of all liable parties identified in a truck accident claim. This can be tedious, time-consuming, and overwhelming for regular car accident lawyers. On the other hand, commercial truck accident lawyers have mastered truck accident law. They can help you quickly navigate trucking accident cases.

What to Look For in a Commercial Vehicle Accident Lawyer

Consider the following factors to find the best truck accident lawyers when you need one:

Detailed Free Consultation

Most law firms offer free case evaluations for truck crash victims. You can always tell how much effort an accident law firm will put into your case from how they handle this initial free consultation.

Experience

An accident law firm handling sizable commercial truck accident cases for decades likely has more experience than a newly established truck accident law firm.

History of Success

How many truck wreck cases has the commercial vehicle accident attorney worked on, including those they’ve taken to trial and succeeded? The answer to this question is often a good indicator of a lawyer’s expertise.

Availability of Resources

Proving fault in commercial truck accidents requires resources. You want to ensure your legal team has enough resources to handle your case. The right resources should include expert witnesses like economists, truck accident reconstructionists, and trucking industry investigators.

Fees

Ensure you understand how a law firm charges for their services before you work with them. Usually, truck accident attorneys operate on a contingency. They’ll take a cut from your settlement.

Final Thoughts

Accidents involving semi-trucks are common even though FMCSA enforces strict safety regulations for trucking companies and their commercial drivers. Their impact is devastating and can lead to severe injuries that affect your work.

You need a qualified commercial truck accident lawyer to help you get the settlement you deserve for all damages incurred in a crash. This might not remove the pain, but it can ease the financial burden of dealing with the aftermath. So, you can focus on bouncing back.

To learn more about finding the right semi-truck accident lawyer for your case, check out our blog.

how many semi truck accidents per year

How Many Semi-Truck Accidents Per Year Are There? (+Other Safety FAQs)

how many semi truck accidents per year

Large trucks account for only 5% of the total number of vehicles on the road, yet they cause a significant number of fatal crashes yearly.

Exactly how many semi-truck accidents per year is concerning.

Nearly 388,000 truck accidents happen annually across the U.S., and the aftermath of these truck crashes ranges from various injury levels to death.

Commercial truck accident statistics from the National Safety Council (NSC) reveal that in 2021, almost six thousand people lost their lives in crashes involving large trucks. A further 155,000 were injured.

This article explores essential commercial truck accident statistics you should know. We discuss how, as a trucker, you can prevent big truck crashes and keep our roads safe.

Important Semi-Truck Accidents Statistics To Know

When a truck crashes, the occupants of other vehicles are the ones who suffer life-changing injuries or lose their lives.

According to a publication by the US Department of Transportation summarizing truck accident statistics, there was a 17% increase in fatalities from trucking accidents in 2021, with 72% of the deaths being passenger vehicle occupants, 17% being large truck occupants, and 11% being non-occupants.

The number of people injured in large truck accidents also increased by 9% between 2020 and 2021 with 71% being passenger vehicle occupants, 27% being large truck occupants, and 2% being non-occupants.

Occupants of passenger cars are more vulnerable to truck crashes. As a trucker, you are responsible for your safety and the safety of other vehicle occupants and road users.

Drivers of tractor-trailers, in particular, need to be more careful than other large truck drivers as 74% of the deaths from truck-related crashes in 2021 were due to fatal accidents involving tractor-trailers.

The remaining truck fatalities resulted from severe accidents involving single-unit trucks. This shows that tractor-trailers are the most dangerous commercial vehicles on our roads.

how many semi truck accidents per year

When and Where Do Most Large Truck Accidents Happen?

Further interesting truck accident statistics from the National Safety Council report indicate when and where most truck-involved accidents happen. Understanding this is crucial so you know when to be extra cautious when driving.

Most truck accidents (73.99%) happen on non-interstate roads. This means interstate highways are the safest for large truck drivers, although some truck accidents (26.01%) still occur on these roads.

The summary of semi-truck accident statistics also shows most fatal accidents occur during the day (63.54%) compared to nighttime (36.46%). Fatal accidents where most car occupants died in 2021 also happened during weekdays – between 6 am and 6 pm.

To reduce the number of motor vehicle crash deaths involving large trucks; truck drivers need to pay extra attention when driving on non-interstate roads during the day, especially between 6 am and 3 pm.

What Causes Semi-Truck Accidents?

Semi-truck accidents can result from a variety of factors, often involving a combination of human errors, mechanical issues, environmental conditions, and other contributing factors. Some common causes of semi-truck accidents include:

Truck Driver Error

Large truck drivers have very little room for errors compared to passenger vehicle drivers. There’s also little leeway to correct mistakes once made, leading to fatal accidents.

For instance, a fully loaded tractor-trailer requires about 40% more space to stop than other passenger vehicles. So, avoiding an accident becomes almost impossible if a semi-truck driver fails to accurately calculate the distance needed to stop. Passenger vehicle drivers, on the other hand, don’t face similar issues.

Driver Fatigue

Despite strict hours-of-service regulations from the Federal Motor Carrier Safety Administration (FMCSA), many large truck drivers work long hours. They experience fatigue, are more likely to sleep behind the wheel, and cause fatal crashes.

Driving Under Influence

Alcohol and other street drugs impair truck drivers’ ability to drive safely. Often, truck drivers become drowsy or slow to react to various road conditions. The chances of drivers causing truck collisions or multiple-vehicle crashes when under the influence are high.

Distracted Driving

Distracted driving occurs when a tractor-trailer driver or drivers of other passenger vehicles use their phones or other hand-held devices while driving. Existing laws in most states prohibit car drivers from doing this. However, some truck drivers still take their eyes off the road to use their phones, and cause fatal accidents.

Vehicle Issues

Several vehicle issues, like tire defects and brake problems, can lead to fatal truck accidents. Fatal crash data from a truck causation study conducted by FMCSA lists brake issues as a top cause of fatal accidents.

Roadway Issues

Sometimes, big rig accidents link back to road conditions. Poor or unmaintained roads with large potholes, missing signage, or faint roadway markings put truckers and other passenger car drivers at risk.

For example, a truck driver may fail to see critical signage on an unfamiliar road leading to driver error which can cause a crash with several passenger vehicles.

Tips For Minimizing Truck Accidents

Although car accident statistics from the National Highway Traffic Safety show an increase in fatalities from motor vehicle crashes, there’s hope that things will change. The Department Of Transportation created a detailed national roadway safety strategy to ensure this happens.

As a truck driver, you can also play your part in minimizing vehicle crashes and truck fatalities by:

  • Maintaining your truck regularly to identify and deal with any issues early
  • Being keen on the road to avoid grave errors that may lead to truck fatalities
  • Avoiding using your phone while driving
  • Resting. Follow the hours-of-service recommendations by FMCSA.
  • Don’t drink and drive.

Conclusion

Most large trucks are heavy, with a gross vehicle weight rating of over 26,000 pounds. So motor vehicle accidents involving large trucks are often more fatal than those involving other commercial vehicles. This is why truckers have to be more vigilant on the road.

If you get involved in a truck accident, remember you can get compensated for any injuries sustained. Our guide on what to do after a semi-truck accident explains all the steps you should take to get compensation.

We’ve also put together helpful information to help you find the right semi-truck accident lawyer if you ever need one. Please read our blog to learn more and to stay updated with the latest news in the trucking industry.

How Much Is Commercial Truck Insurance?

How Much Is Commercial Truck Insurance?

Commercial truck insurance is one of the largest operating expenses you face as an owner-operator or fleet manager. Rising premiums in recent years reflect higher repair costs and stricter safety requirements.

The average monthly cost for for-hire transport trucks is about $954, or more than $11,000 annually. Total coverage ranging anywhere from $3,500 to over $20,000 per year per truck, depending on the state, type of cargo, and driving history.

Understanding where these numbers come from can help you choose the right coverage and avoid overpaying for policies that don’t fit your business needs.

What Is Commercial Truck Insurance?

Commercial truck insurance is a specialized type of commercial auto coverage designed to protect you, your equipment, and the freight you haul.

Unlike standard commercial auto insurance, truck insurance is specifically tailored for Class 8 tractors, box trucks, semi-trucks, and specialty vehicles that face unique risks on the road.

Commercial truck insurance combines multiple policies (liability, physical damage, cargo, and non-trucking coverage) into a single package that meets federal and state requirements.

The Federal Motor Carrier Safety Administration (FMCSA) requires all for-hire truckers to carry minimum liability coverage, and most shippers and motor carriers require additional protection before you can haul loads.

This isn’t optional. Operating without the right truck insurance exposes you to fines, suspensions, and even loss of operating authority.

Closeup the silver ballpoint modern pen on insurance contract with planning in background.

What Is the Cost of Different Types of Commercial Insurance Coverage?

The cost of commercial truck insurance depends heavily on the type of coverage you choose. Some policies are required by law, while others are optional but critical to protecting your business from major losses.

Below are the most common types of coverage and what you can expect to pay in 2025 and beyond.

Primary Liability Coverage

Primary liability insurance is mandatory for all trucking businesses. It protects against bodily injury and property damage caused by your truck in an accident.

Owner-operators with authority (meaning you operate under your own FMCSA motor carrier number and carry all required insurance yourself) pay around $954 per month, or about $11,500 annually. If you’re leased to a motor carrier, that carrier usually provides primary liability on your behalf.

Physical Damage Coverage

Physical damage protects your truck and trailer against collision, theft, vandalism, and weather damage.

Premiums vary based on equipment value, but when combined with other required policies, the average total annual cost of insuring a Class 8 truck typically falls between $8,000 and $12,000.

If you finance or lease your truck, your lender will likely require physical damage insurance.

General Liability Coverage

General liability covers accidents and injuries that aren’t directly caused by your truck. For example, if a customer slips and falls at your office, this policy helps cover medical bills.

While standalone premiums can start as low as $600 annually, most trucking businesses purchase higher coverage limits or bundle general liability with other policies to save on overall costs.

Non-Trucking Liability Coverage

Non-trucking liability protects you when you drive your semi for personal reasons, not business. Say you take your truck to the store or run personal errands after dropping off a load. If you cause an accident, this coverage applies.

Premiums generally range from $400 to $1,600 annually, depending on your driving record and state requirements.

While it’s not legally required everywhere, most leased owner-operators need it to stay compliant with carrier contracts.

Bobtail Insurance

Bobtail coverage applies when you’re driving your tractor without a trailer, whether you’re on the way to pick up a load or heading home after a delivery. Most motor carriers require leased drivers to carry this policy.

You can expect to pay around $400 to $600 annually for bobtail insurance. Although it’s a relatively small expense compared to other coverages, it’s essential for avoiding uncovered liability when you’re operating without a trailer.

Motor Truck Cargo Insurance

Cargo insurance protects the freight you haul against theft, damage, or loss in transit. Coverage limits vary widely, with many shippers requiring at least $100,000 in protection. Some contracts demand up to $1 million in coverage, particularly for high-value or hazardous loads.

Premiums usually range from $1,000 to $4,000 per year, depending on cargo type and risk profile. Without this policy, a single damaged or stolen load could put your entire business at risk.

Umbrella Insurance

Umbrella insurance provides an extra layer of liability protection beyond your standard policies. It kicks in if a major accident or lawsuit exceeds the limits of your primary liability coverage.

For example, if damages total $1.5 million but your liability policy only covers $1 million, umbrella insurance can fill that gap.

The average cost for trucking umbrella insurance runs $5,000 to $7,000 per year, though actual premiums depend on your operation, routes, and claims history. Considering the rise in large jury verdicts against carriers, many fleets choose this additional coverage to safeguard against catastrophic losses.

How Much Does Commercial Truck Insurance Cost for Different Types of Drivers?

The price you pay for commercial truck insurance isn’t only about the truck itself. It’s also tied to your role in the industry. Whether you’re brand new with a Commercial Drivers License (CDL), running under your own authority, leasing onto a carrier, or managing a fleet, the numbers vary.

Here’s what you can expect.

New CDL Drivers

Financing as a new CDL driver will likely be your single biggest expense in year one. Insurers see new drivers as high risk due to limited experience, which drives up premiums. First-year drivers with authority can pay $12,000 to $16,000 annually for full coverage.

You can lower costs by taking safety courses, joining an association, or starting under a lease with an established carrier until you build experience. A clean driving record over the first two years will dramatically improve your rates.

Owner-Operators With Authority

When you operate under your own authority, you’re responsible for carrying all required coverages, including primary liability, cargo, and physical damage. On average, owner-operators pay between $9,000 and $16,000 annually per truck, depending on location, cargo, and driving record.

While these costs are higher than leased drivers face, having your own authority gives you more freedom to negotiate contracts, choose loads, and grow your business on your terms.

Leased Owner-Operators

If you’re leased to a motor carrier, the carrier typically covers your primary liability, which significantly lowers your insurance costs. You’ll still need bobtail, non-trucking liability, and possibly physical damage coverage.

Most leased owner-operators spend between $2,000 and $4,000 annually for these supplemental policies. This is one of the most affordable ways to get started in the industry, especially if you’re still building credit or saving capital for your own authority.

Small Fleet Owners

Running a small fleet (two to ten trucks) comes with higher costs overall, but you may qualify for bulk discounts if you insure all vehicles together. Fleet insurance is often quoted on a per-truck basis, and premiums vary widely by state and cargo type.

On average, small fleet owners pay $10,000 to $20,000 annually per truck, with higher-risk operations reaching even more. Bundling multiple coverages and maintaining strong safety programs can help you control these costs and keep your business competitive.

The truck and the car collided on the highway. Strong accident. Traffic accidents on the road. View from above. Traffic jam on the road.

Average Semi-Truck Insurance Costs by State

Insurance premiums for semi trucks vary dramatically depending on where you operate. Local laws, traffic density, litigation climate, and even weather risk all push rates higher or lower.

Here’s how five key state insurance costs compare, and what that means for you:

  • Texas ($10,533): Running a truck in Texas puts you in the mid-to-higher tier. This rate reflects heavy traffic corridors, oilfield operations, and high claims activity.
  • California ($11,834): With dense urban freight, strict regulations, and expensive liability risks, California tends to push your insurance costs upward.
  • Florida ($12,872): Exposure to hurricanes, theft, and complex freight routes combine to make Florida one of the costlier places to insure a semi truck.
  • Georgia ($15,200): Georgia’s high rate is driven by aggressive liability judgments and freight flow-intensity through its transportation hubs.
  • New Jersey ($20,763): At the high end, New Jersey reflects dense industrial corridors, high litigation exposure, and tight regulatory environments.

Operating in one of the higher-cost states means your insurance allotment must be not just sufficient, but built into every haul. If your freight contracts or route options let you choose where you register or base your trucks, these state cost differentials become strategic levers.

Also, if your operation crosses state lines, you’ll often carry the higher rate or face surcharges if servicing a more expensive jurisdiction. Knowing the “home state” baseline helps you anticipate premiums and avoid surprise cost jumps.

Other Factors Affecting Semi-Truck Insurance Costs

Beyond coverage type and driver status, many external and operational elements influence what you’ll pay in insurance premiums. Understanding these variables gives you leverage to reduce costs and negotiate better terms.

Liability Risks and Legal Environment

You pay not just for routine claims but also face large verdicts and litigation trends. Over the past few years, “nuclear verdicts” (jury awards exceeding $10 million) have pushed insurers to raise premiums across the board.

In 2024, social inflation and escalating lawsuit costs have become major drivers of rate increases. Because of these legal pressures, insurers price in higher risk. If your fleet operates in states with aggressive jury climates or few tort reforms, your base premium will reflect that.

Operational Costs and Inflation

Insurers pass the rising costs of repairs, labor, and claims onto drivers. In 2024, many trucking companies saw premium hikes of 12.5% or more, driven by higher parts costs, labor inflation, and rising claims severity.

Also, inflation affects the total cost of claims (medical bills, legal fees), pushing insurers to factor higher future exposure into current premiums.

Cargo Type, Route Risk, and Operating Radius

What you haul and where you haul it matter a lot. If you transport hazardous materials or high-value freight, insurers treat your operation as higher risk because the potential losses are greater and the cost of a single claim can be massive.

A spill of hazardous cargo can trigger environmental cleanup and lawsuits, while stolen electronics or luxury goods can cost hundreds of thousands of dollars in one incident.

Routes through high-density areas or regions with elevated theft rates or adverse weather also command higher premiums. Distance and route complexity directly raise your risk exposure and, therefore, your premium.

Driver Record, Experience, and Safety Programs

Your drivers are the first line of risk control. Insurers examine accident history, violation records, and years behind the wheel. Clean records and long experience reduce your risk profile.

Investing in driver training and adopting trucking telematics or ELD data sharing can qualify you for discounts. Those safety measures provide real proof to insurers that risk is controlled.

Vehicle Age, Equipment, and Safety Features

Newer trucks with advanced safety systems (collision avoidance, lane assist, electronic stability) are less of a liability in insurer models. Older trucks without modern safety gear attract higher premium rates.

Also, customized or heavily modified rigs often cost more to insure, because replacement parts and collision repairs become more complex.

Claims History and Loss Ratio

Insurers dig deep into your history of claims. Frequent small losses or one major claim raise your risk score.

If your loss ratio is high (i.e., claims eat up a lot of premiums), you’re more likely to see premium hikes. Consistency matters. A single catastrophic accident can create a spike in your rates for years beyond the incident.

Credit Score and Financial Stability

Many insurers review your business credit or your personal credit history. A stable credit profile suggests you’re less likely to default or under-report risk, so you may get better rates. Poor credit may lead to surcharges or reduced options.

Geographic Location and State Regulations

Where your trucks are registered and where they operate drives premium differences. States differ in minimum insurance mandates, tort laws, and local claim climates.

For example, states with more aggressive lawsuit environments or high accident rates command higher rates. Additionally, routes crossing into those states can raise your rate or trigger surcharges.

Regulatory and Industry Trends

New regulations, such as mandates for safety tech, emissions standards, or minimum coverage limits, can increase insurance baseline costs. Compliance burdens push insurers to raise premiums.

Emerging threats such as cargo theft, supply chain vulnerabilities, and cyber risk are also drawing underwriter attention, pushing the price of insurance upward.

Tips for Reducing Insurance Costs and Keeping Them Low

Once you’ve secured a policy, keeping premiums manageable requires consistent effort. These practical steps help you show insurers that your operation is lower risk, which translates to long-term savings:

  • Maintain a clean driving record: Fewer violations and accidents directly lower your risk profile and premium.
  • Monitor credit reports: Strong business or personal credit often qualifies you for better rates.
  • Optimize routes: Reduce unnecessary mileage and limit exposure to high-risk corridors.
  • Bundle coverage: Combine liability, cargo, and physical damage policies for discounts.
  • Ask about fleet programs: Insuring multiple trucks together usually earns volume savings.
  • Invest in safety technology: Telematics, dash cams, and electronic logging devices can qualify you for rate reductions.
  • Join associations: Membership in trucking associations or verified safety programs improves your risk rating.
  • Adjust deductibles: Higher deductibles mean lower premiums if you have the cash flow to cover occasional claims.
  • Review coverage annually: Updating policies as your business grows ensures you’re not overpaying for outdated limits.

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Conclusion

Commercial truck insurance is one of your largest ongoing expenses, but it’s also one of the most critical protections for your business. Whether you’re a new CDL driver facing higher premiums or a small fleet owner trying to keep trucks on the road, understanding coverage types and cost factors helps you stay prepared.

Premiums from $3,500 to over $20,000 per truck annually, managing insurance is about more than compliance – it’s about protecting your livelihood. With the tips above, you can keep costs under control without sacrificing coverage.

Mission Financial Services is here to help truckers like you navigate financing and keep your business moving forward.

If you’re ready to take control of your operating costs and secure the right coverage for your trucks, start your credit application with Mission Financial Services today.

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